Finding the perfect gift can be daunting. But prepaid gift cards solve the problem of selecting gifts for people who: already have everything, are office associates (such as for an office secret Santa or Yankee Swap), or picky teenagers.
For those who want to give prepaid gift cards this year for a holiday presents they are in good company. Gift cards are becoming a popular gift to give – and a welcome gift by recipients - according to the National Retail Federation’s 2009 survey, which found that 55.2% of adults would be happy to receive gift cards this holiday season.
Worries about Buying Gift Cards
But there still is a hesitancy to buying prepaid cards as gifts, according to the same survey which found that one in four (22.1%) adults chose not to give gift cards because they felt the cards were too impersonal a gift; one in ten adults surveyed (12.6 percent) were concerned about expiration dates; another 9.1% said they would rather stretch their budget farther by buying items on sale (9.1%). A few others worried about the loss of the card, or which company to buy the card from, or worried that the company would go out of business before the recipient could use the card.
But since gift cards are a welcome gift – and may just be the perfect present for some – here are some tips to allay fears about purchasing one.
Select the Right Type of Gift Card
Gift cards can be issued from retailers or banks – and there is a big difference between these prepaid cards.
- Retail issued gift cards. Most national retailers do not impose fees or have expiration dates on cards – but these cards must be used at a specific store.
- Bank issued gift cards. While gift cards issued from a bank or credit card company can often be used everywhere that card is accepted (companies such as MasterCard, Visa, Discover and American Express issue these gift cards), there are some downsides: gift cards issued from a bank, mall, or credit card company usually do have fees associated with them (such as transaction, activation or other fees). These cards will also have an expiration date. Note that mall cards – with the name of mall chain on them – can be used only within the mall that issued it.
Stick with Reputable Retailers or Card Issuers
Make sure to purchase gift cards through reputable retailers only. Stay away from buying gift cards through online auction sites. Gift cards sold through these sites are likely to be counterfeit or obtained fraudulently and may have no value when redeemed in a store or through a retailers’ web site, advises the National Retail Federation.
Understand the Gift Card Policy
Ask the following questions (or read the fine print) before purchasing cards:
- Is there a replacement policy available if the gift card is lost or stolen?
- Does the gift card have an expiration date?
- Are there any fees associated with buying or using the card? (Some issuers impose an “inactivity” fee if the card is not used in a specified time; others have a per-transaction fee or monthly maintenance fee).
After Purchasing the Card
- Send the original receipt along with the card to the recipient. They will need it if the card is lost or stolen.
- Make sure the recipient looks at the terms and conditions of the gift card and spends it as soon as possible to avoid incurring any fees.
While prepaid gift cards are often the perfect gift, buyer beware: take these extra precautions to make sure that you – and the gift card recipient – aren’t caught with extra fees or with cards that are valueless because they were not redeemed in time.
Source:
National Retail Federation’s Gift Card Research
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